XP Factory PLC on Wednesday reported ‘significant growth’ in various key metrics over its latest half year, and expects annual results in line with market forecasts despite consumers facing cost pressures.

The Crawley, England-based entertainment company, which operates under the Boom Battle Bar and Escape Hunt brands, said pretax loss in the first half of 2023 narrowed to £2.4 million from £3.3 million the year before.

However, overall revenue more than doubled to £18.7 million from £8.1 million.

In particular, the Boom Battle Bars owner-operated business saw turnover surge up more than fivefold to £11.3 million from £2.2 million, although franchise activities revenue decreased to £1.1 million from £1.4 million.

Meanwhile, revenue for the Escape Hunt owner-operated business increased 41% to £6.1 million from £4.3 million, and franchise revenue increased 17% to £282,000. Both brands delivered like for like growth of around 20%.

Site-level earnings before interest, tax, depreciation and amortisation also more than doubled to £5.0 million from £2.2 million. Adjusted Ebitda more than doubled to £2.4 million from £1.1 million.

XP Factory’s gross margin decreased slightly to 62.1% from 62.8%. Its cash balance at June 30 was £3.7 million, up from £3.2 million at December 31.

XP Factory also said that its first international Boom Battle Bars site, opened in Dubai in late July, was ‘performing well’.

‘We are delighted to have delivered such transformational growth compared to the same period in 2022,’ commented Chief Executive Richard Harpham.

He added: ‘Performance since the end of June 2023 has been encouraging with both Boom and Escape Hunt delivering strong like for like growth over the summer months...Whilst mindful of ongoing short-term pressures on consumers and the second half weighting of the industry, we remain optimistic for the performance of both businesses over the short and medium term and expect to report full year numbers in line with market expectations.’

XP Factory added that ‘record’ pre-bookings for corporate sales gave it further confidence that it can meet expectations for the whole of its financial year, which as announced in early August will end on March 31, 2024.

XP Factory shares were up 1.5% at 16.50 pence in London on Wednesday.

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